Prospex Energy PLC · LSE:PXEN
Prospex Energy — Investor Presentation (November 2022)
21 slides from Prospex Energy's investor presentation, November 2022
Slide 1: Prospex Energy plc Corporate Presentation
Prospex Energy plc Corporate Presentation AIM : PXEN November 2022
Slide 2: Disclaimer
DISCLAIMER This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitm
Slide 3: About Prospex
ABOUT PROSPEX AIM listed natural gas production and power generation investment company (AIM:PXEN) Spain: Ongoing Production & Power Generation ►8.1MW power station generating revenue at record-high electricity prices ►Plant upgrade completed to allow 24/7 power generation ►Permitting underway for n
Slide 4: Recent High Impact Events
RECENT HIGH IMPACT EVENTS Higher-than-predicted revenue generation from our Spanish assets due to historically high electricity prices. Spanish subsidiary now significantly cash-positive. Installation of solar panels on the roof of the Romeral Power Station was completed in August 2022. The project
Slide 5: Poised for Growth
POISED FOR GROWTH GROWTH IN ITALY ▪ The 37% interest in the Italian asset is projected to generate net post-tax post-royalty cashflows of €2.6 million per year, according to the CGG CPR, calculated at 2019 gas prices ▪ Using current forward curve gas price predictions (ICE TTF) the 2023 net annual p
Slide 6: Multiple Paths to Income Generation and Optimisation
MULTIPLE PATHS TO INCOME GENERATION AND OPTIMISATION • Electricity Sales from the El Romeral Power Plant • Automation of the Power Plant for around-the- clock power generation • Gas Sales from the Selva field in Italy • Multi-well campaign submitted for environmental approval to grow our Spanish res
Slide 7: Assets: Italy and Spain
O.nospex ENERGY PLG Assets: Italy and Spain
Slide 8: Italy – Selva Malvezzi
ITALY – SELVA MALVEZZI Proven GAS RESERVES in prolific Po Valley region ► Selva Malvezzi is an approved production permit with an area of 81 km2 ► PXEN farmed-in to 17% in October 2017 ► Podere Maiar (PM-1) discovery well drilled in December 2017 ► Well tested gas to surface in January 2018 from 2 i
Slide 9: Selva Gas Production
SELVA GAS PRODUCTION STEPS TO GETTING ON PRODUCTION ►Preliminary production concession, approved Feb 2019 ►Technical environmental approval, approved Jan 2020 & Nov 2020 ►Environment Minister Decree, approved April 2021 ►INTESA (Intergovernmental agreement), granted Q2 2022 ►Final Production concess
Slide 10: Selva Gas Pipeline Route
SELVA GAS PIPELINE ROUTE Prospex Energy – Corporate Presentation Q4 2022 9
Slide 11: Selva Malvezzi Upside
SELVA MALVEZZI UPSIDE Low-risk follow-up targets ► Selva North and Selva South are stratigraphic pinch- outs in the same style as the Podere Maiar discovery, supported from interpretation of old Selva Wells ► Following the success of Podere Maiar, they are upgraded to Contingent Resources by the CGG
Slide 12: El Romeral: Production & Development Project
EL ROMERAL: PRODUCTION & DEVELOPMENT PROJECT HISTORY Prospex owns 49.9% of El Romeral (50.1% : Warrego Energy) ►Since 1983, 7 wells drilled resulted in gas discoveries ►5 went on production from 2002 ►2 proven undeveloped discoveries (PUDs) Uceda El Romeral Power Station El Romeral-3 CURRENT Aventur
Slide 13: Seismic Reprocessing
SEISMIC REPROCESSING Full reprocessing of El Romeral 2D Seismic using modern, broad Original bandwidth processing flow and new methods for noise attenuation Reprocessed Resulted in a significant uplift of imaging quality Project was delivered on time and in budget Re-interpretation has started with
Slide 14: El Romeral: Gas Ready for Development
EL ROMERAL: GAS READY FOR DEVELOPMENT Prospex owns 49.9% of El Romeral (50.1% : Warrego Energy) 11 LOW-RISK PROSPECTS 2 UNDEVELOPED DISCOVERIES FULLY-OWNED CAPACITY AT PLANT CERTIFIED BY CPR* FROM THE 1980s LOCAL PIPELINE NETWORK FOR MORE GAS ❖ BEST TECHNICAL CASE SHOWN IN SOLID COLOUR ❖ LOW AND HIG
Slide 15: Spain – Tesorillo Project
SPAIN – TESORILLO PROJECT POTENTIAL UNDEVELOPED DISCOVERY ►PERMIT TEMPORARILY SUSPENDED, awaits Ministry resolution and reinstatement as production licence ►Contains the Almarchal-1 gas discovery well (drilled in 1957) which logged 212m of net gas pay. Multiple DST’s flowed gas to surface ►Operated
Slide 16: The Team; Outlook & Objectives
The Team Outlook & Objectives
Slide 17: Outlook for 2022-2023
OUTLOOK FOR 2022-2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 OTHER BUSINESS DEVELOPMENT OPPORTUNITIES (INCLUDING SOLAR PROJECTS) EL ROMERAL PERMITTING & PLANNING MULTIWELL CAMPAIGN SPAIN INCREASE ELECTRICITY PRODUCTION REVENUES TESORILLO – WELL DESIGN AND PERMITTING; GEOLOGY + GEOPHYSICS INTEGRATION; FIELDWORK
Slide 18: Summary
SUMMARY Investment case: Unlocking shareholder value: ►Secured reserves/commercial revenue generation in 2021 ►Diversified portfolio assembled ►Rising share price in response to commodity prices and loan ►Risk managed repayments, still trading at discount to market valuation ►Multiple routes to sign
Slide 19: Reserves and Resources (Bcf)
RESERVES AND RESOURCES (BCF) Net 2P Reserves Net 2C Contingent Net Best Estimate Resources Prospective Resources El Romeral, 0.15 North Selva – East Selva & other Tarazona, 0.9 Level B, 3.3 Podere Gallina, 32.6 Tesorillo Romeral 15%, 124.6 Romeral-4S, 1.6 Prospects, 44.8 5.11 Bcf 7.72 Bcf 493 Bcf It
Slide 20: The Team
THE TEAM Mark Routh CEO & Managing Director Mark is a Petroleum Engineer with more than 40 years of experience in the oil & gas industry. He has an MSc in Petroleum Engineering. He spent eight years as CEO/Chairman of AIM listed IOG plc. Founded CH4 Energy in 2002, which was focused on gas in NW Eur
Slide 21: Thank you
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